May 24, 2012
Eight percent workforce reduction to reduce cuts by up to $3.5 billion a year, to be “reinvested” back into the company.
HP has confirmed intentions to cut 27,000 jobs by the end of 2014, reports the BBC, representing a global workforce reduction of eight percent which the OEM claims will reduce costs by $3.5 billion (€2.7 billion) a year.
The OEM has declined to comment on where the reductions will take place, with a spokesperson stating: “We have not yet announced specific plans with regards to specific locations. We do not expect the workforce reduction to impact just about every business and region.”
Previously, Bloomberg claimed an anonymous source specified that HP’s enterprise service group would see as much as 10,000 to 15,000 job losses as a result of declining profitability.
The workforce reduction is cited by HP as part of a “productivity initiative designed to simplify business processes”.
The job cut announcement accompanies the release of HP’s latest quarterly releases, which reveal that the OEM performed better than analysts had expected, with profits reporting noting a decline of 31 percent to $1.6 billion (€1.2 billion).
Meg Whitman, CEO of HP, commented: “This quarter we exceeded our previously provided outlook and are executing against our strategy, but we still have a lot of work to do.”
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